Chainlink Faces Bearish Pressure At $12.50 Support Level

Chainlink, a decentralized oracle network, is currently facing bearish pressure as it approaches the $12.50 support level. The token has closed its session with a bearish tone, and with reduced liquidity expected over the weekend, price action is anticipated to remain volatile. This volatility makes it crucial to monitor intraday movements closely, as a clearer setup may take time to develop. The current price zone could provide early indications of the token’s next move.

According to an analysis by CRYPTOWZRD, both the LINKUSDT and LINKBTC daily candles have closed firmly bearish, reflecting Bitcoin’s broader pullback and the altcoin market’s sensitivity to BTC’s movements. This pattern highlights the need for healthier bullish candles to emerge before a sustainable recovery can take hold. CRYPTOWZRD noted that LINKBTC is in extremely oversold territory, suggesting that a positive reversal is statistically likely. If a bounce materializes, it could ignite a sharp upside spike in LINK, potentially flipping sentiment from bearish to bullish in a short period.

CRYPTOWZRD emphasized that Chainlink is currently trading at the $12.50 daily support target, a pivotal zone. A decisive bullish reversal from this level is essential to trigger an impulsive upside move and reestablish upward momentum. If buyers can reclaim control, the next critical resistance levels are identified at $16 and $19.50. Clearing these levels would signal a broader trend change rather than a short-lived bounce. However, Bitcoin’s weekend price action will remain a major influence on Chainlink, especially given the expected drop in liquidity. As a result, CRYPTOWZRD plans to focus on lower-time-frame charts in the coming sessions, seeking quick scalp opportunities while waiting for clearer confirmation of direction.

Assessing the immediate outlook, the analyst notes that LINK’s intraday chart remains bearish and noticeably volatile, underscoring the market’s current uncertainty. Price action has been chopping around key levels, making any clear direction difficult to trust without firm confirmation. On the bullish side, a decisive breakout and sustained hold above the $12.85 intraday resistance could flip sentiment. If buyers manage to establish support above this line, the setup would present a compelling long opportunity with an initial upside target near $14.40, where the next significant resistance resides. Conversely, a failed attempt to hold $12.85—marked by a retest and subsequent decline—would favor the bears. Such rejection would create potential short setups, as renewed selling pressure could drag the price lower, especially if broader market conditions stay cautious.